Howard Midstream Partners LP, which owns and operates midstream energy assets in Texas and Pennsylvania, withdrew its plans for an initial public offering on Thursday. It originally filed in September 2017 with a proposed deal size of $200 million; its last amended S-1 was filed in November 2017.
Howard Midstream did not provide a reason for its withdrawal. It had planned to use IPO proceeds to pay down debt. In February 2019, Howard Energy Partners announced that it had entered into a joint venture with NextEra Energy Partners to develop gas transportation opportunities in Texas' Eagle Ford shale.
One oil and gas midstream services company has IPO'd this year, Diamondback Energy's Rattler Midstream LP (RTLR); Rattler priced at the midpoint to raise $665 million and finished Thursday at $19.94, a 14% return from its May IPO.
In its prospectus, Howard Midstream Partners LP stated that it owned/controlled natural gas gathering systems in South TX and Northeastern PA, a natural gas processing plant in Webb County, TX, a deepwater marine terminal in Brownsville, TX and a condensate and NGL stabilization facility in Live Oak County, TX, as well as the right of first refusal to acquire interests in five projects that are in various stages of development.
The LP's listed sponsor was Howard Energy Partners, a midstream energy company co-founded by CEO Michael Howard and President Bradley Bynum in 2011. The sponsor was controlled by Alinda Capital Partners (59% interest as of the initial filing), Alberta Investment Management (AIMCo) (28%) and management and other affiliates (13%).
The San Antonio, TX-based company was founded in 2016 and booked $242 million in revenue for the 12 months ended September 30, 2017. It had planned to list on the NYSE under the symbol HMP. Barclays, RBC Capital Markets, Tudor, Pickering, Holt & Co., BofA Merrill Lynch, Citi, MUFG, SunTrust Robinson Humphrey and Wells Fargo Securities were set to be the joint bookrunners on the deal.
